KKR completes strategic equity investment in Westbrick Energy Ltd.
CALGARY, Nov. 19, 2012 /CNW/ - Westbrick Energy Ltd. ("Westbrick" or the "Company") and Kohlberg Kravis Roberts & Co. (together with its affiliates, "KKR") are pleased to announce that earlier today, KKR closed on a C$75 million strategic investment in the Company. In addition, KKR has committed C$175 million of equity capital for follow-on investments in the Company to support its continued growth through acquisitions and the organic development of its asset base, for a total potential investment of C$250 million. Proceeds from the initial C$75 million investment will be used to fund Westbrick's capital program and acquisition strategy.
Ken McCagherty, President and CEO of Westbrick commented: "We are excited to be partnering with KKR, a leading North American energy investor. KKR's track record of value creation in the energy sector and its approach to partnership make them a great fit with the team at Westbrick. The combination of our experience and the financial support together with our business plan means Westbrick can grow its business well into the future."
Westbrick is a private oil and gas company with current operations in the greater Pembina area of Alberta, with a focus on growing production through low-risk development and exploitation within its strategic footprint. The Company currently owns over 70,000 net acres of oil and gas rights, and expects to be producing over 2,500 boe/d (17% liquids) by the end of November. The Westbrick team has a proven record of success in building energy companies of scale in the Western Canadian Sedimentary Basin.
Jonathan Smidt, Member of KKR, said: "KKR is thrilled to be partnering with Westbrick to invest in the compelling opportunities available in the Canadian oil and gas marketplace today. The combination of Westbrick's top-tier management team, its distinguished and value-added Board, and now its ready access to equity capital, creates a differentiated platform to execute against the market opportunity."
Upon closing of the transaction, two members of KKR's Energy & Infrastructure business, Jonathan Smidt and Brandon Freiman, joined the Board of Directors of the Company.
About Westbrick Energy
SOURCE: Westbrick Energy Ltd.
For further information:
Ken McCagherty, President and CEO
500 – 4th Ave S.W.
Transmitted At: 2012-11-19 16:01 http://www.newswire.ca/en/releases/archive/November2012/19/c9447.html